Venture Debt

Debt financing for fast-growing companies

Venture Debt is available for earlier stage businesses. They carry a higher level of risk and associated interest rates for that reason. Crowd2Fund conducts enhanced due diligence on Venture Debt loans; a more nuanced and deeper understanding of the business is needed in order to approve their listing.

Benefits of choosing Venture Debt for your business

Simpler structure and clear repayment plan. Lower cost than equity finance.

Borrow up to £ 1m from 10% to 15% for up to 5 years.

Build an investor team and get the benefits of a bespoke marketing plan.

Increase your business value and win new customers.

Leverage company assets and security to access this funding.

Retain full control of your business.

Risk warning

Investing in Venture Debt Loans or Revenue Loans is higher risk because the affordability of the business is calculated based on the growth of the business rather than the historical affordability. They are also offered to businesses who may not yet be generating a profit, such as earlier stage businesses who re-invest their profits into growth. Because they are higher risk loans you are also rewarded with higher returns, which are typically 15%.


Past performance and forecasts are not reliable indicators of future results. Your capital invested is not covered for compensation in the event of a loss by the FSCS. Tax treatment will depend on the individual circumstances and may be subject to change.

Who is eligible for Venture Debt?

Venture Debt is available for earlier stage businesses which have an established business model, great growth prospects and are revenue generating.

If you can only access equity finance but can demonstrate high growth potential and a clear business plan for repayments you may have to consider Venture Debt.

Crowd2Fund performs enhanced due diligence

A more in depth understanding of the business is needed to assess these types of opportunities. This is because we don’t just base the loan on the historic performance but also the future potential. The finance team will look deeply into the company plans and operating model to understand the affordability and suitability of Venture Debt with the view to minimise defaults.

Fees

Venture Debt is always carefully designed and tailored to each business.

We take a fee of 10% in order to provide you with enhanced due diligence, and a bespoke marketing campaign.

How it works

Crowd2Fund’s assessment of businesses seeking Venture Vebt takes into account reviewing the companies strategy and business plan, the previous business activity of the founders, as well as the company’s historic trading data.

1

Businesses who need funding submit a business proposal to Crowd2Fund.

2

Our Risk & Due Diligence team reviews the proposal against our strict acceptance criteria.

3

Successful businesses are listed; investors pledge the amount they want to invest, and business growth is the result.

Venture Debt for investors?

Venture Debt is 'project finance', despite the higher risk involved, investors are allowed to participate in a new asset class, thus potentially generating higher returns. Venture Debt should only be participated in by sophisticated investors who can make their own assessment of the business.

Build a diversified portfolio

Venture Debt is a high-risk investment vehicle and should only be part of a diversified portfolio. Investors with less tolerance or risk should not take part in these opportunities.

Authorised IFISA Manager

£Billions available to invest into companies like yours via the IFISA.

Risk warning

Past performance and forecasts are not reliable indicators of future results. Your capital invested is not covered for compensation in the event of a loss by the FSCS. Tax treatment will depend on the individual circumstances and may be subject to change.

Top